Stacks' Is Consolidating in a Symmetrical Triangle For Now
Stacks' (STX) rally has paused, and a very volatile consolidation seems to be taking place in the form of a symmetrical triangle. While the symmetrical triangle is a neutral chart pattern, when it appears within an established trend, it tends to break in the direction of the prevailing trend.
Symmetrical Triangle Pattern
The symmetrical triangle is in the early stage of development, and it might take a while before it is concluded. If the price remains contained within the current upward and downward sloping trendlines, we will have a valid symmetrical triangle.
On the upside, a break above the downward sloping trendline will open the door for a retest of the short-term resistance level of $2.44.
The current swing high of $2.61 is another technical level that the bulls need to overcome. However, the most important resistance level remains the recent all-time high of $2.90 established on April 5.
The 50-period simple moving average aligns perfectly with the upward sloping trendline to provide more confluence. This means it will be harder for the bears to take charge. However, a downside break will open the door for a retest of support level $1.83.
Symmetrical Triangle Pattern
The symmetrical triangle is in the early stage of development, and it might take a while before it is concluded. If the price remains contained within the current upward and downward sloping trendlines, we will have a valid symmetrical triangle.
On the upside, a break above the downward sloping trendline will open the door for a retest of the short-term resistance level of $2.44.
The current swing high of $2.61 is another technical level that the bulls need to overcome. However, the most important resistance level remains the recent all-time high of $2.90 established on April 5.
The 50-period simple moving average aligns perfectly with the upward sloping trendline to provide more confluence. This means it will be harder for the bears to take charge. However, a downside break will open the door for a retest of support level $1.83.
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